DoED Starts Preparation For Budhi Ganga Project

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    KATHMANDU, July 19:

    doedThe Department of Electricity Development (DoED) is all set to conduct Environmental Impact assessment (EIA) study and prepare detailed project report (DPR) for the Budhi Ganga (20 MW) hydropower project after the government allocated fund for the project in the budget for 2013/14.

    “We will start works on EIA, DPR and updating the feasibility study of the project very soon,” Gokarna Raj Pantha, senior divisional engineer at the DoED, told Republica.
    In the budget for 2013/14, the government has made budgetary allocations for two projects — Budhi Ganga and Tamakoshi V (87 MW).

    “We will start constructions works on Budhi Ganga project right after completing DPR as we don´t need to get generation license,” added Pantha.
    This is the first time that the DoED has been allowed to develop hydropower projects after Nepal Electricity (NEA) came into being in 1985.

    The government has allocated total budget for Rs 30 billion for the development of hydropower projects and transmission lines in this fiscal year. It has decided to seek loan assistance from the Saudi Fund for Development (SFD) and Kuwait Fund for Arab Economic Development (KFAED) for the development of the project that is estimated to cost around US$ 55 million.

    The SFD has already agreed in principle to extend loan assistance for the project. According to DoED sources, the government has already signed $18 million loan agreement with KFAED.

    The Achham-based project is one of many hydropower projects identified under the Medium-scale Hydropower Project Study, 1998. The DoED plans to complete project by 2019.

    Source : Republica